SABC pushes for universal media levy as TV licence model fails

Key topics:SABC says TV licence model is outdated and financially unsustainableProposed shift to universal, tech-neutral public media levy via SARSNew funding model delayed; first draft expected December, final by February.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..By Myles Illidge.South African Broadcasting Corporation (SABC) board chair Khathutshelo Ramukumba says the broadcaster’s reliance on TV licence fees for funding is unsustainable.He explained that the most prominent alternative to the TV licence scheme is a universal, tech-neutral, public media levy that could be collected through the South African Revenue Service (Sars).In a column published in the Sunday Times, Ramukumba explained that the current TV licence scheme assumes that most residents watch TV on a single screen in their living rooms.“The SABC’s reliance on TV licence fees as the main source of funding is unsustainable,” he said.“The reality is that many South Africans consume content on their phones, laptops, and gaming consoles, often streaming international series, podcasts, or short-form videos.”As a result, the challenges the SABC faces are intensifying, with advertising revenue declining due to increased viewership on other platforms and fewer households paying TV licences each year.“The SABC does not need endless bailouts,” said Ramukumba.“What it needs is a deliberate, innovative, structured, and sustainable funding intervention that recognises its public value and secures its independence.”Among the SABC’s proposed interventions is a modern funding model to replace the TV licence scheme. It envisions a universal, tech-neutral public media levy collected from each household by Sars.Ramukumba highlighted the example of Germany’s Rundfunkbeitrag: a mandatory monthly fee of €18.36 (R364) per household per month to fund public broadcasting services.He explained that the Rundfunkbeitrag ensures the continued access of all citizens to trusted, independent journalism, education, and entertainment.“If South Africa fails to act, we will move in the opposite direction towards a future where our media diet is dictated by algorithms and corporate strategies from across our borders,” Ramukumba stated.While the outcome has yet to be announced — in fact, it has been delayed — South Africa’s communications department appointed BMI TechKnowledge to create a funding model for the SABC..Bad news about the end of TV licences.Answering questions before the National Council of Provinces on 13 November 2025, communications minister Solly Malatsi revealed that the finalisation of the new funding model would be delayed.He revealed that BMI TechKnowledge (BMIT) had requested a deadline extension to 6 February 2026, which his department approved.“On 16 October, BMIT requested an extension of the project from 15 December to 6 February, as a result of their concerns around work disruptions over the festive season,” the minister said.Malatsi said several stakeholders had also indicated their unavailability during the festive season. As a result, the request was approved to allow for thorough, fair, and extensive stakeholder engagement.“The first draft of this funding framework is expected to be presented to us in mid-December, and by early February, we will be in a position to finalise the final report,” he said.However, the implementation of the new funding model will still be a considerable distance away as several steps must be completed before it can be actioned.“Any funding model in the public sector has or affects how the Treasury allocates resources,” said Malatsi.“We will then have a consultation with the Minister of Finance, based on what BMIT would have proposed to us.”While the SABC is supposed to generate its primary funding through the TV licence scheme, its reliance on advertising revenue increased as more TV licence holders avoided paying their annual fees.If the public broadcaster were to get its TV licence holders to pay their fees, the collection of the revenue would have a significant impact on its currently dire financial situation.TV licence holders have actively avoided paying the fees for several years. Avoidance rates climbed from 69% in 2019 to 86% in 2024.Ramukumba’s vision for a universal levy echoes that of SABC CEO Nomsa Chabeli, who recently admitted that the TV licence scheme had failed and is no longer relevant.“It’s no longer relevant for the world that we live in today. The SABC did give submissions on the SABC Bill, and one of the key things we looked at was a household levy,” she said.“We’ve also looked at the possibility of the South African Revenue Service introducing a collection mechanism on their side.”.*This article was originally published by MyBroadband and has been republished with permission.

SABC pushes for universal media levy as TV licence model fails

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